What other financial institutions offer crypto ETFs?

Vanguard’s 50M+ Clients: Get Ready for Access to Crypto ETFs

The arrival of U.S. spot Bitcoin ETFs in January 2024 and spot Ethereum ETFs in mid-2024 reshaped the on-ramps to digital assets. Fidelity and Charles Schwab quickly enabled trading, while Vanguard initially restricted client access. With new leadership and a public review of its policy, many are asking: will Vanguard’s 50M+ investors soon be able to buy crypto ETFs directly on the platform? Here’s what crypto-native and TradFi-savvy readers should know-and how to prepare.

Why Vanguard Opening the Door Matters for Crypto Adoption

• Scale: Vanguard serves 50+ million investors globally and manages trillions in assets. Even modest allocations could drive significant flows and market depth.
• Distribution: Access through everyday brokerage and retirement accounts accelerates mainstream adoption versus niche exchanges.
• Behavioral shift: Adding crypto exposure via low-cost, regulated ETFs fits the index-and-ETF mindset of long-term Vanguard investors.

Where Vanguard Stands on Spot Bitcoin and Ethereum ETFs in 2025

Facts to date:

• Vanguard declined to offer spot Bitcoin ETFs at launch in January 2024 and restricted client purchases on its brokerage platform.
• In July 2024, Vanguard appointed Salim Ramji (formerly head of BlackRock’s iShares) as CEO, and the firm said it would review its approach to crypto access.
• As of 2025, Vanguard has not launched its own crypto ETF and has historically limited trading access to third-party spot Bitcoin and Ethereum ETFs on its retail platform. The firm has indicated it is evaluating access under new leadership. Availability may change; check your account messages and trading interface for the latest status.

How Vanguard compares today

What Access Could Look Like for Vanguard Investors

When/if Vanguard enables trading, expect a familiar ETF experience with crypto-specific nuances:

• Coverage: Access to leading spot Bitcoin and Ethereum ETFs from major issuers (e.g., BlackRock, Fidelity, Bitwise, VanEck, ARK/21Shares, Franklin Templeton, Grayscale).
• Accounts: Brokerage accounts first; IRAs (Traditional/Roth/Rollover) are likely once trading is enabled. 401(k) lineup inclusion remains unlikely near term due to plan-sponsor and regulatory considerations.
• Trading: Commission-free ETF trades, standard U.S. market hours, with potential margin and options restrictions depending on Vanguard’s risk policies.
• Costs: Expense ratios vary widely-large spot BTC/ETH ETFs cluster around low-to-mid basis points, while some legacy conversions remain higher. Always compare fees and spreads.
• Liquidity: The largest spot crypto ETFs have deep liquidity and robust market-maker support, but check intraday spreads and depth for your order size.

Practical Steps to Prepare Your Vanguard Portfolio

1. Confirm account setup: Ensure you have a Vanguard brokerage account (not just a mutual fund account). Verify options for taxable and IRA accounts.
2. Know your tickers: Shortlist a few BTC and ETH ETFs with strong AUM, tight spreads, and reputable custodians. Track expense ratios and creation/redemption activity.
3. Draft an allocation policy: Define target weights (e.g., 1-5% total portfolio), rebalancing bands, and maximum drawdown tolerance before you trade.
4. Execution plan: Use limit orders, avoid thin liquidity at the open/close, and consider staggering entries to manage slippage and volatility gaps.
5. Documentation: For advisors and RIAs using Vanguard, prepare IPS updates, client education materials, and compliance notes on suitability and risks.

Key Risks, Fees, and Market Structure Considerations

• Volatility: Crypto trades 24/7; ETFs do not. Price gaps can occur between ETF market hours and the underlying market.
• Premium/discount: Efficient arbitrage reduces dislocations, but fast markets can widen spreads and tracking deviations.
• Expense drag: Fees compound over time. Compare total cost of ownership: expense ratio + bid/ask + potential borrow/margin costs (if applicable).
• Custody and counterparty: ETFs rely on regulated custodians and authorized participants. Review each fund’s custody, insurance disclosures, and creation/redemption mechanics.
• Taxes: In taxable accounts, standard securities rules apply. Wash-sale rules apply to ETF shares. In IRAs, gains are tax-deferred/tax-free depending on account type.
• 401(k) access: Even if Vanguard enables brokerage trading, inclusion in employer retirement plans is a separate decision and remains limited industry-wide.

Signals to Watch in 2025

• Platform changes: Tickers for spot BTC/ETH ETFs appearing in search, research pages, and order entry.
• Policy updates: Vanguard client emails, help-center articles, and trading-eligibility lists explicitly referencing spot crypto ETFs.
• Advisor channel: Announcements for RIAs and institutional clients regarding approved product lists and compliance guidance.
• Regulatory scope: While BTC and ETH ETFs operate at scale, spot ETFs for other assets (e.g., beyond BTC/ETH) remain uncertain pending SEC posture.

Bottom line on timing

Vanguard has publicly reviewed its prior restrictions after leadership changes, but it has not launched crypto funds and has historically limited trading of third-party products. A formal greenlight would be a watershed moment for distribution, yet investors should wait for explicit confirmation in their accounts.

Conclusion: Position Now, Execute When the Gate Opens

With 50M+ clients, Vanguard enabling access to spot Bitcoin and Ethereum ETFs would be one of the most consequential adoption steps since the funds launched. Prepare your allocation, shortlist low-cost, liquid ETFs, and set clear risk rules. Watch for official platform updates-then execute with discipline when access arrives.